Exchange Control Liberalisation

In February 2018 further liberalisation of the exchange control regime of The Bahamas went into effect. The liberalisation relate to both current account transactions and certain capital controls.

The Central Bank stated that the trade related measures are intended to further reduce the need for direct Central Bank approvals for international business payments, and the capital account measures target a prudent balance, while promoting more economic dynamism through sustainable and stable financial flows. The financial and investment transactions reforms mostly affect transactions undertaken by Bahamians or Bahamian owned businesses.

Without prior CBB approval, resident businesses may open and maintain foreign currency accounts with local banks for operating transactions earned in foreign currency, with account balances of up to $100,000 in the aggregate.

Subject to CBB approval, residents may maintain existing foreign currency assets, without penalty, with the right to repatriate the assets or to maintain the holdings outside The Bahamas. Deposits and other assets repatriated to The Bahamas may be retained in foreign currency.

Subject to CBB approval, residential or time share purchases may be made at the official rate, up to a limit of $ 0.5 million. Payments in excess of this amount will require use of the ICM.

Only CBB approval to establish the foreign currency account is required, thereafter, the account can continue to be operated for as long as the account holder continues to operate in The Bahamas and annual approval is not required.

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Bahamian Dollar mortgage loans to Temporary Residents Residing and working in The Bahamas for at least 3 years for owner-occupied property for